While I am still working on back testing program, I will start forward testing , but this time, I am paper trading. Dummy trading involves certain degree of pattern recognition, this forward testing will improve my skill in this area.
ES,trend chart turned down. I was looking for any opportunity to establish short position. Short position was taken below 11:50am (NY time) candle, after dummy system signaled.
I have two exit targets. Yesterday’s low served as minimum target (1.3R), and Fib extension (From yesterday’s high to today opening range’s low) 100% as second target (4.6R). Initial plan, I would let the profit run if it broke yesterday’s low. I would cover the position at yesterday’s low if market reversed.
Second target was hit.
Here is the 5-min chart:
Another trading opportunity was found in E-mini Nasdaq. position was established below 11:55am (NY time) candle. NQ position was closed at minimum target (4.2-R) at yesterday’s low. It failed to reach Fib extension 100%.
Here is the 5-min chart of NQ